AgriBioTech, Inc. ("ABT") (NASDAQ National Market: ABTX) announced today that the Company has received $10 million from the second closing of a long-term convertible debt financing at a fixed conversion price. The proceeds from the long-term debt will be used for short-term debt retirement, working capital and pending acquisitions. The long-term debt will lower the Company's interest cost. Additional details on the funding will be made available upon completion of the offering.

According to Dr. Thomas, "the prudent use of equity and long-term debt to repay short-term debt, fund pending acquisitions, and provide working capital has been part of management's plan for capital formation since the filing of registration statements in March 1998. Debt and equity placements are part of the Company's normal financing activities. The Company is proceeding on schedule with the previously announced strategic alternative process."

In our press release dated January 4, 1999 the Company discussed the breakdown in negotiations for the alfalfa business unit and the international sorghum business unit of AgriPro Seeds, Inc., a subsidiary of Helena Chemical Company ("Helena"). Although the Company has not been served, we have been provided with a copy of a lawsuit filed by Helena related to this proposed acquisition. The Company believes the lawsuit is without merit and it will be defended vigorously. According to Dr. Thomas, "the Company continues to maintain forage and turfgrass seed industry leadership in germplasm, market share, personnel and biotechnology, with or without the acquisition."

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